WHAT ARE GOODS?
Term “Goods” has been defined in Section 2(7) of Sales of Goods Act to mean every kind of movable property such as the following:
Stock and shares,
Growing crops,
Grass,
Things attached to or forming part of land but agreed to be severed for the purpose of or under a contract of sale
EXCEPTIONS TO GOODS include
Actionable Claims like Bill of Exchange or Promissory Note, and
Money which is a ‘Medium of Exchange’ rather than ‘goods’
Consumer goods are products that are sold to customers for use at home, in the classroom, for leisure, or for other purposes. Consumer products may be divided into three categories: services, nondurable items, and durable goods.
Consumer products with a lengthy lifespan (more than three years) and extended use are referred to as durable goods. Bicycles and refrigerators are two examples. Nondurable items have limited lifespans and are used up in less than three years. Food and beverages are examples of nondurable products. Haircuts and vehicle repairs are provided as services.
Because they are the final result of a production process that takes place over time, consumer goods are also known as final goods or end products. To create consumer items for sale, company owners and entrepreneurs need labour from employees, capital goods (like manufacturing machinery), and raw resources (such land and basic metals). Producer products are those that are utilised in various industrial processes but are not ultimately sold to consumers.
In order to regulate the sale of the majority of everyday consumer items, the Consumer Product Safety Act was created in 1972. The law established the U.S. Consumer Product Safety Commission, a panel of five individuals selected to regulate product safety and issue recalls for already-existing items.
Convenience products are those that can be purchased easily and are frequently consumed. These products, which include things like milk and tobacco products, are typically sold by wholesalers and retailers. Additional categories of convenience goods include staple convenience items (meeting fundamental client needs) and impulsive convenience items (non-priority goods, such as cigarettes).
When compared to convenience products, shopping items demand more thought and planning before being purchased. Compared to convenience products, shopping items are more costly, more durable, and have longer lifespans. Televisions and furnishings are two examples.
Specialty consumer items are uncommon and sometimes seen as opulent. The purchasing of speciality items is only permitted by consumers with the necessary financial resources. Marketing initiatives are targeted at a certain market, typically the wealthy. Fine jewels and furs are some of these things.
Unwanted consumer items are easily accessible yet are only bought by a small portion of the market. These things are typically one-time purchases that fulfil certain needs, like life insurance.
Fast-Moving Consumer Goods
Fast-moving consumer products are one of the biggest product categories. Non-durable products, such as food and beverages, that are distributed quickly through the supply chain from manufacturers to retailers and consumers are included in this section. The fastest-moving consumer items from shops are found in this group, which provides potential for rapid shelf-space turnover.
Consumer products may be divided into four categories from a marketing perspective: convenience, shopping, speciality, and unsought items. These classifications are based on consumer purchasing trends.
Customer products are divided by marketers into four groups based on consumer purchasing habits: convenience, shopping, speciality, and unsought items.
Consumer Goods ETFs
The iShares U.S. Consumer Staples ETF is the biggest consumer products ETF (IYK). 2 As of February 2022, the iShares U.S. Consumer Goods ETF, which was established in 2000, held 58 stocks and $954 million in net assets under management (AUM). The Dow Jones U.S. Consumer Goods Index was the index that the fund initially followed, but in 2021 it was modified to follow the Russell 1000 Consumer Staples RIC 22.5/45 Capped Index. Procter & Gamble, Coca-Cola, PepsiCo, Philip Morris, and CVS are the top holdings.
Many of the biggest corporations are absent from the Russell 1000 Consumer Staples Index. The largest consumer products firm in the world as of 2021, Nestlé, is one company that is not included in the ETF’s holdings.
Privately Traded Consumer Goods
Additionally, privately held manufacturers of consumer products are not included in the index. Mars and SC Johnson are two of the biggest private consumer products firms. While SC Johnson is a consumer products firm with brands like Pledge, Raid, Ziploc, and Windex that are focused on the house, Mars is known for its candy and gum lines.
What Kinds of Consumer Goods Are There?
Consumer products may be divided into three categories: services, nondurable items, and durable goods. Products with a lengthy lifespan, such tools and appliances, are considered durable products. Packaged food and beverages are examples of nondurable items that are used in less than three years. Services such as counselling, cleaning, and repairs are considered intangible products.
How Do Consumer Goods Get Classified by Marketers?
Marketers divide consumer products into four groups based on customer purchasing trends: convenience, shopping, specialised, and unsought items. Convenience items include packaged food and drinks that are often eaten and are easily available for purchase. Shopping items demand more preparation, are typically more costly, and are built to last longer than convenience items. Jewelry is one example of a specialty commodity that is frequently seen as a luxury and is only purchased by those who can afford it. Unwanted consumption items are also easily accessible but rarely bought.
What Is the Difference Between Capital and Consumers Goods?
Physical assets used by a business in the creation of goods and services that consumers will eventually utilise include capital goods, which include structures, machinery, equipment, vehicles, and tools. Capital goods are utilised to create completed commodities; they are not finished things themselves. Consumer goods are items that people use and have little potential for future economic benefit. Depending on their intended use, certain items can be classified as either capital or physical assets.
REFERENCES
What Are Consumer Goods? 3 Types of Consumer Goods, https://www.masterclass.com/articles/what-are-consumer-goods
E. Estevez(2019),What Are Consumer Goods?,https://www.investopedia.com/terms/c/consumer-goods.asp#:~:text=Consumer%20goods%20are%20products%20bought,all%20examples%20of%20consumer%20goods.
Consumer Protection Laws in India
Acuity Law(2021),https://www.lexology.com/library/detail.aspx?g=c4e591c9-ee97-4cf9-8e06-4adc2041da9d
DIVISION TWO COMMENTARY ON CONSUMER PROTECTION ACT http://ncdrc.nic.in/bare_acts/1_1_2.html What are consumer goods? Definition and examples(2017),https://marketbusinessnews.com/financial-glossary/consumer-goods/
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